Download Report

NEWS RELEASE
TSX: ELD NYSE: EGO
ELD No. 14-12
October 30, 2014
2014 Third Quarter Financial and Operating Results
2014 Guidance Maintained, AISC $735/oz for the Quarter
VANCOUVER, BC – Eldorado Gold Corporation, (“Eldorado” or “the Company”) today reported the
Company's financial and operational results for the third quarter ended September 30, 2014. During
the quarter, the Company generated $263.5 million in revenues from metal sales, and adjusted net
earnings of $36.1 million ($0.05 per share). Cash flow from operating activities for the quarter totalled
$92.2 million ($0.13 per share).
“The Company delivered another solid quarter with all of our mines performing to plan, notable
progress at development projects, and advancement of our exploration targets. Combined with our
strong operational performance, Eldorado continues to have a first-rate balance sheet and we closed
the quarter with total liquidity of $937.3 million while continuing to grow our business.” said Paul
Wright, Chief Executive Officer of Eldorado. “We are driving our development projects forward and I
would like to highlight the significant progress made this quarter at Skouries. The mill foundations were
completed and the SAG and ball mill installations are now underway. Eldorado continues to successfully
position itself as a leading low-cost operator of high quality assets, boding well in today’s volatile
markets.”
Third Quarter Financial and Operational Highlights

Gold production of 192,578 ounces (including Olympias production from tailings retreatment).

Adjusted net earnings of $36.1 million ($0.05 per share). Net profit attributable to shareholders of
the Company was $19.8 million ($0.03 per share).

Gold revenues were $241.2 million on sales of 189,321 ounces of gold at an average realized gold
price of $1,274 per ounce.

Liquidity of $937.3 million, including $562.3 million in cash, cash equivalents and term deposits, and
$375.0 million in lines of credit.

All-in sustaining cash costs averaged $735 per ounce; cash operating costs averaged $488 per
ounce.

Significant developments at Skouries: completion of the mill foundations; installation of the SAG
and ball mills underway; rate of underground decline advancement continues to improve and
construction of the tailings dam is set to begin in the fourth quarter.

Feasibility Study at Certej commenced in order to optimize the expanded resource and improve the
metallurgical design.

Further exploration success at the White Mountain and Jinfeng operations in China, as well as at the
Piavitsa project in Halkidiki, Greece.

Appointment of two new members to the Board of Directors: Pamela Gibson and John Webster.
1
Throughout this press release we use cash operating cost per ounce, total cash costs per ounce, all-in sustaining cost per ounce,
gross profit from gold mining operations, adjusted net earnings and cash flow from operating activities before changes in noncash working capital as additional measures of Company performance. These are non IFRS measures. Please see page 11 of the
MD&A for an explanation and discussion of these non IFRS measures. All dollar amounts in US $, unless stated otherwise.
Financial Results
Summarized financial results
3 months ended
September 30,
9 months ended
September 30,
2014
2013
2014
2013
Revenues (millions)
$263.5
$287.3
$808.9
$892.3
Gold revenues (millions)
$241.2
$266.4
$736.4
$817.2
189,321
199,117
570,570
564,723
$1,274
$1,338
$1,291
$1,447
Cash operating costs (US$ per ounce sold)
$488
$472
$499
$485
Total cash cost (US$ per ounce sold)
$543
$528
$556
$544
All-in sustaining cash cost (US$ per ounce
sold)
$735
n/a
$784
n/a
Gross profit from gold mining operations
(millions)
$102.0
$123.1
$298.2
$404.2
Adjusted net earnings (millions)
$36.1
$54.4
$109.2
$186.0
Net profit (loss) attributable to shareholders
of the Company (millions)
$19.8
$36.4
$88.7
$34.2
Earnings (loss) per share attributable to
shareholders of the Company – Basic
(US$/share)
$0.03
$0.05
$0.12
$0.05
Earnings (loss) per share attributable to
shareholders of the Company – Diluted
(US$/share)
$0.03
$0.05
$0.12
$0.05
Dividends paid (Cdn$/share)
$0.01
$0.05
$0.02
$0.12
Cash flow from operating activities before
changes in non-cash working capital (millions)
$78.7
$104.8
$265.6
$329.6
Gold sold (ounces)
Average realized gold price (US$ per ounce)
2
Financial Results
Net income attributable to shareholders of the Company for the quarter was $19.8 million (or $0.03 per
share), compared with $36.4 million (or $0.05 per share) in the third quarter of 2013. Net income was
impacted by a non-cash $7.6 million iron ore inventory write-down related to Vila Nova. Gold revenues
of $241.2 million were nine percent lower year over year due to lower gold prices and ounces sold.
Gross profit from gold mining operations was seventeen percent lower than that of the third quarter of
2013 reflecting lower profit margins and sales volumes. Total cash cost per ounce increased three
percent year over year. Adjusted net earnings were $36.1 million or $0.05 per share compared with
$54.4 million or $0.08 per share in the third quarter of 2013.
Exploration expenses fell $6.4 million year over year reflecting changes in the Company’s exploration
program in response to lower gold prices. The Company reported a foreign exchange loss of $4.5 million
for the quarter as compared to a gain of $0.9 million for the third quarter of 2013 mainly as a result of
the impact on cash deposits of the weakening of the Canadian, Brazilian and Turkish currencies against
the US dollar. Interest and financing costs fell $2.9 million year over year, reflecting an increase in
capitalization of interest on the Company’s Greek development projects.
The effective tax rate for the quarter was sixty-four percent as compared to a rate of fifty percent in the
third quarter of 2013. The increase in the effective tax rate year over year was due to the impact of the
fall in the Turkish lira on the deferred tax balances of the Company’s Turkish entity as well as an increase
in the percentage of unrecognized tax losses due to lower profits.
3
Operations Update
Summarized Operating Results
3 months ended
September 30,
9 months ended
September 30,
2014
2013
2014
2013
$102.0
$123.1
$298.2
$404.2
192,578
204,620
589,652
552,359
Cash operating costs ($ per ounce sold)
$488
$472
$499
$485
Total cash cost ($ per ounce sold)
$543
$528
$556
$544
$62.9
$79.5
$163.1
$242.1
78,030
84,762
222,085
231,718
Cash operating costs ($ per ounce sold)
$411
$324
$435
$328
Total cash cost ($ per ounce sold)
$427
$343
$454
$349
$10.3
$13.9
$36.6
$64.9
26,838
23,438
78,841
69,583
Cash operating costs ($ per ounce sold)
$547
$551
$541
$558
Total cash cost ($ per ounce sold)
$564
$568
$562
$586
$12.7
$15.3
$39.7
$49.6
25,387
28,179
79,556
82,324
Cash operating costs ($ per ounce sold)
$381
$377
$399
$405
Total cash cost ($ per ounce sold)
$563
$557
$575
$589
$12.4
$9.9
$41.7
$26.9
39,421
40,212
126,284
90,843
Cash operating costs ($ per ounce sold)
$609
$684
$590
$743
Total cash cost ($ per ounce sold)
$693
$767
$673
$831
$3.7
$4.5
$17.0
$20.7
18,130
19,287
65,603
57,664
Cash operating costs ($ per ounce sold)
$648
$713
$611
$693
Total cash cost ($ per ounce sold)
$691
$751
$651
$734
4,772
8,742
17,283
20,227
Gross profit – gold mining operations (millions)
Ounces produced – including Olympias production
from tailings retreatment
Kisladag
Gross profit – gold mining operations (millions)
Ounces produced
Efemcukuru
Gross profit – gold mining operations (millions)
Ounces produced
Tanjianshan
Gross profit – gold mining operations (millions)
Ounces produced
Jinfeng
Gross profit – gold mining operations (millions)
Ounces produced
White Mountain
Gross profit – gold mining operations (millions)
Ounces produced
Olympias
Ounces produced from tailings retreatment
4
Kisladag
Operating Data
Tonnes placed on pad
Average treated head grade - grams per tonne (g/t)
Gold (ounces)
- Produced
- Sold
Cash operating costs (per ounce sold)
Total cash costs (per ounce sold)
Financial Data (millions)
Gold revenues
Depreciation and depletion
Gross profit – gold mining operations
Sustaining capital expenditures
3 months ended
9 months ended
September 30,
September 30,
2014
2013
2014
2013
3,829,444 3,336,465 10,814,170 9,553,306
1.28
1.28
1.04
1.28
78,030
82,374
$411
$427
84,762
85,029
$324
$343
222,085
222,041
$435
$454
231,718
231,959
$328
$349
$105.2
$6.8
$62.9
$5.4
$113.4
$4.1
$79.5
$8.4
$285.4
$19.5
$163.1
$30.5
$336.5
$10.9
$242.1
$19.0
Gold production for the quarter at Kisladag was lower year over year due to lower average head grade
of ore placed on the leach pad. Run of mine ore contributed to increased tonnes placed on the pad
during the quarter. Cash costs were higher than in the same period in 2013 due to an increase in
production waste mining (2014 – 6.4 million tonnes versus 2013 – 0.2 million tonnes). Capital
expenditures during the quarter included waste stripping and leach pad construction.
Efemcukuru
Operating Data
Tonnes Milled
Average treated head grade - grams per tonne (g/t)
Average Recovery Rate (to Concentrate)
Gold (ounces)
- Produced
- Sold
Cash operating costs (per ounce sold)
Total cash costs (per ounce sold)
Financial Data (millions)
Gold revenues
Depreciation and depletion
Gross profit – gold mining operations
Sustaining capital expenditures
3 months ended
September 30,
9 months ended
September 30,
2014
106,942
9.08
93.3%
2013
105,641
8.50
93.2%
2014
324,149
8.54
93.2%
2013
301,869
8.77
93.6%
26,838
24,033
$547
$564
23,438
26,410
$551
$568
78,841
77,115
$541
$562
69,583
101,888
$558
$586
$30.0
$5.8
$10.3
$7.7
$35.4
$5.9
$13.9
$5.3
$99.7
$18.9
$36.6
$18.9
$148.1
$20.9
$64.9
$21.8
Gold production during the quarter at Efemcukuru was higher year over year due to higher mill
throughput and average treated head grade. Sales during the quarter were lower year over year due to
the timing of concentrate shipments. Cash operating costs per ounce were lower due to higher average
treated head grade and continued cost reduction efforts. Capital spending during the quarter included
costs related to capitalized underground development, mobile equipment, surface infrastructure, and
process improvements.
5
Tanjianshan
Operating Data
Tonnes Milled
Average treated head grade - grams per tonne (g/t)
Average Recovery Rate
Gold (ounces)
- Produced
- Sold
Cash operating costs (per ounce sold)
Total cash costs (per ounce sold)
Financial Data (millions)
Gold revenues
Depreciation and depletion
Gross profit – gold mining operations
Sustaining capital expenditures
3 months ended
September 30,
2014
2013
281,862
285,406
3.50
3.40
81.4%
82.9%
9 months ended
September 30,
2014
2013
823,698
805,532
3.41
3.54
81.5%
82.5%
25,387
25,387
$381
$563
28,179
28,179
$377
$557
79,556
79,556
$399
$575
82,324
82,324
$405
$589
$32.1
$4.9
$12.7
$2.1
$38.1
$6.7
$15.3
$4.2
$102.7
$16.7
$39.7
$6.9
$119.0
$20.0
$49.6
$9.3
Gold production during the quarter at Tanjianshan was lower year over year as a result of lower tonnage
throughput and lower recovery rate due to the treatment of stockpile material. Capital spending
included resource evaluation activities and waste stripping.
Jinfeng
Operating Data
Tonnes Milled
Average treated head grade - grams per tonne (g/t)
Average Recovery Rate
Gold (ounces)
- Produced
- Sold
Cash operating costs (per ounce sold)
Total cash costs (per ounce sold)
Financial Data (millions)
Gold revenues
Depreciation and depletion
Gross profit – gold mining operations
Sustaining capital expenditures
3 months ended
September 30,
2014
2013
353,048
363,798
3.86
3.66
87.1%
88.0%
9 months ended
September 30,
2014
2013
1,090,006 1,052,406
4.01
3.15
87.1%
85.0%
39,421
39,397
$609
$693
40,212
40,212
$684
$767
126,284
126,255
$590
$673
90,843
90,888
$743
$831
$50.7
$11.0
$12.4
$0.9
$53.8
$13.0
$9.9
$15.0
$163.7
$37.0
$41.7
$8.0
$129.7
$27.2
$26.9
$44.3
Gold production during the quarter at Jinfeng was lower year over year due to an increase in gold in
circuit inventory. Cash operating costs per ounce were lower mainly due to less waste tonnage from the
open pit. Capital spending during the quarter included underground mine development and tailings dam
construction.
6
White Mountain
Operating Data
Tonnes Milled
Average treated head grade - grams per tonne (g/t)
Average Recovery Rate
Gold (ounces)
- Produced
- Sold
Cash operating costs (per ounce sold)
Total cash costs (per ounce sold)
Financial Data (millions)
Gold revenues
Depreciation and depletion
Gross profit – gold mining operations
Sustaining capital expenditures
3 months ended
September 30,
2014
2013
218,500
209,581
2.79
3.28
89.4%
84.0%
9 months ended
September 30,
2014
2013
632,923
611,548
3.48
3.44
88.1%
85.5%
18,130
18,130
$648
$691
19,287
19,287
$713
$751
65,603
65,603
$611
$651
57,664
57,664
$693
$734
$23.2
$6.9
$3.7
$5.8
$25.7
$6.7
$4.5
$9.1
$84.9
$25.0
$17.0
$15.1
$83.9
$20.6
$20.7
$20.9
Gold production during the quarter at White Mountain was lower year over year mainly as a result of
lower average treated head grade, partially offset by higher average recovery rates. Cash operating
costs per ounce decreased year over year mainly due to reduced backfill costs. Capital spending this
quarter included underground development, exploration and delineation, and camp improvements.
Vila Nova
Operating Data
Tonnes Processed
Iron Ore Produced
Average Grade (% Fe)
Iron Ore Tonnes
- Sold
Average Realized Iron Ore Price
Cash Costs (per tonne produced)
Financial Data (millions)
Revenues
Depreciation and depletion
Gross profit / loss from mining operations
Sustaining capital expenditures
3 months ended
September 30,
9 months ended
September 30,
2014
208,583
180,152
63.4%
2013
219,925
189,858
63.2%
2014
602,785
517,951
63.0%
2013
612,700
528,456
63.1%
135,093
$46
$60
126,835
$74
$58
439,993
$65
$62
338,256
$98
$65
$6.3
$1.3
($10.6)
$0
$9.4
$1.2
$0.9
$0.3
$28.8
$4.3
($10.2)
$1.0
$33.3
$3.3
$8.1
$3.9
The Company recorded a $7.6 million inventory write-down against gross profit/loss for Vila Nova during
the quarter as a result of the continued fall in iron ore prices. The Company has decided to place the
mine on care and maintenance pending a review of options to return it to profitability. Not including the
inventory write-down, Vila Nova recorded a loss of $3.0 million for the quarter compared with gross
profit of $0.9 million in the third quarter of 2013.
7
Stratoni
Operating Data
Tonnes ore mined (wet)
Tonnes ore processed (dry)
Pb grade (%)
Zn grade (%)
Ag grade (g/t)
Tonnes of concentrate produced
Tonnes of concentrate sold
Average realized concentrate price (per tonne)
Cash Costs (per tonne of concentrate sold)
Financial Data (millions)
Revenues
Depreciation and depletion
Gross profit from mining operations
Sustaining capital expenditures
3 months ended
September 30,
2014
2013
60,006
60,011
58,230
56,463
5.63%
6.33%
9.66%
9.37%
146
161
14,363
14,586
15,884
12,096
$960
$820
$737
$547
$15.2
$2.3
$1.3
$1.2
$9.9
$2.2
$1.1
$1.4
9 months ended
September 30,
2014
2013
174,523
174,245
169,227
167,315
5.96%
6.39%
10.75%
9.49%
153
166
46,013
42,918
45,590
42,847
$885
$840
$716
$749
$40.3
$6.3
$1.5
$2.7
$36.0
$7.5
($3.6)
$2.0
Combined metal concentrate production at Stratoni for the quarter was the same year over year, with
lower lead concentrate production offset by higher zinc concentrate production as a result of changes in
metal head grades. Concentrate sales were higher year over year due to the timing of sales. Prices
received for lead and zinc concentrates were both higher year on year.
Development Project Update
Kisladag Mine Expansion
During the third quarter work began at Kisladag on the engineering of an additional 7.5 million tonne
per annum (Mtpa) crushing/screening circuit and its integration with the new gyratory crusher station.
Work also began on the design of a new stockpile facility to provide feed to the existing
crushing/screening circuit as well as the additional 7.5 Mtpa circuit. Total capacity for crushed ore will
be raised to 20 Mtpa as per the expansion plan approved during the second quarter. Work continued
during the quarter on upgrading the overland conveyor and stacking system that feeds the leach pad to
handle the additional crushed throughput. Capital spending totaled $6.8 million during the quarter.
Skouries
The mill foundations at Skouries were completed during the quarter. These include the semi-autogenous
grind (SAG) mill, ball mill, and the regrind mills. A key milestone of the project was also achieved, with
the transportation to site, and start of installation, of the SAG and ball mill shells. Placement of the mills
is scheduled to be completed during the fourth quarter. During the quarter the project received
approval of the technical study for the construction of the first tailings dam which has allowed
construction work to start in the fourth quarter. Piling also commenced in the flotation building area.
During the quarter, pit preparation work continued with the removal of topsoil and overburden from
the open pit. The pit work will increase during the fourth quarter as waste material is mined for
construction of the tailings dam facility. The procurement process for the open pit mining contractor
also began during the quarter with a site visit by potential bidders on the contract.
8
Progress continued on the underground decline with the advancement rate improving. Capital spending
totaled $35.4 million during the quarter.
Olympias
A total of 137,566 tonnes of tailings were reprocessed during the quarter at a grade of 2.69 grams per
tonne and a total of 4,772 payable ounces of gold in concentrate were produced. Cash proceeds from
the sale of concentrate generated $6.5 million during the quarter on 5,393 ounces of gold in
concentrate. Capital spending totalled $27.9 million during the quarter including: $8.4 million related to
tailings reprocessing, production royalties and transportation and selling costs; $2.2 million related to
capitalized interest; and the remainder on mine development as well as Phase II engineering.
Plans for transitioning the plant operation from Phase l tailings retreatment to Phase II processing of
underground ore continued to be studied during the quarter. The plans are based on upgrading the
existing plant facilities to handle a throughput of up to 650,000 tonnes per year of ore to produce gold,
lead/silver and zinc concentrates.
Perama Hill
Preliminary engineering was complete with the final front end engineering design report received during
the quarter. The Company continues to work with Greek government authorities to facilitate approval of
the environmental impact assessment (EIA). Capital spending totaled $1.6 million during the quarter.
Certej
During the quarter the feasibility study commenced in order to optimize the expanded resource and
improve the metallurgical design. Construction permits were obtained for the 2014 site works program
allowing mobilization of the site earthworks contractor to begin rough grading of the south plant site
and construction of the pilot water treatment plant. Capital spending totaled $3.6 million during the
quarter.
Tocantinzinho
During the quarter work continued on optimization of the Tocantinzinho feasibility study. Following a
review of the geological model, which updated the overall tonnes and grade in the deposit, a rework of
the mine design and plant throughput has been incorporated into the ongoing optimization analysis.
Construction on a portion of the recently approved forest road began, which will allow 4x4 access in the
dry season. Capital spending totaled $1.2 million during the quarter.
Eastern Dragon
The Eastern Dragon site continued under care and maintenance during the quarter with permitting
activities ongoing. The Company was informed that the approval process for the project EIA is to be
conducted by the Heilongjiang Provincial Environment Protection Bureau, an interim step to approval of
the Project Permit Approval (PPA) by the National Development and Reform Commission (NDRC). Site
personnel continued to provide support to the permitting team, particularly at the local and provincial
level.
9
Exploration Update
During the third quarter, a total of 19,000 metres of exploration drilling were completed at the
Company’s mine sites, development projects, and exploration projects.
Greece
In the Halkidiki District, a 6,000 metre drilling program continued during the quarter at the Piavitsa
deposit, which is located 2 kilometres west of the Stratoni project. This program consists largely of infill
drillholes, designed to confirm the continuity of mineralization delineated in widely-spaced drillholes
drilled during 2012 and 2013. Results to date showed grades and thicknesses in general agreement with
the resource model.
At the Stratoni mine, step-out drilling targeted the western and down-dip extensions of the orebody.
The best results were obtained from just below the current production levels where thick massive
sulfide intercepts indicate down-dip continuity of the orebody.
In the Perama and Sapes district, exploration activities during the quarter focused on updating the
geological model for the Sapes deposit for the purposes of refining the resource model and identifying
exploration drilling targets.
Romania
In the Certej project area, exploration drilling during the quarter tested satellite targets at Magura and
Bocsa, both of which were sites of historical underground exploration. No significant results were
obtained from the first three drillholes on these targets. These prospects will be further tested during
the fourth quarter, upon receipt of required drilling permits.
At Muncel, located 15 kilometres southwest of Certej, the final three drillholes of the first phase of
exploration drilling were completed. One of these drillholes was abandoned after intersecting
underground workings, while the other two cut zones of sulfide stringer veinlets.
The Certej deposit is currently the subject of a detailed geological reinterpretation program, which will
be completed in the fourth quarter with updated deposit geology and resource models.
Turkey
Exploration drilling during the quarter in Turkey was limited to the Efemcukuru project, where 2,900
metres of drilling tested the Dedebag vein system and segments of the Kokarpinar vein. The best results
were obtained from the central and northern portions of the Kokarpinar vein, where sulfide-rich
rhodochrosite vein intercepts of several metres in width were obtained.
Reconnaissance exploration activities included mapping and sampling of volcanic centres in the greater
Kisladag region to evaluate potential for buried porphyry systems, and evaluations of regional prospects
in the northern part of the country.
China
At Tanjianshan, drilling programs were completed at the Dushugou prospect and at the Qinlongtan
(QLT) deposit. At QLT, drilling confirmed the continuity of the QLT Northwest zone in the previously
untested gap between the 2013 drillholes and the QLT open pit.
Exploration drilling at the White Mountain mine (4,700 metres completed) tested step-outs along-strike
and down-plunge from the ore body. Mining grades and thicknesses were confirmed in five separate
10
areas, with highest grades encountered in the North and North Deep ore zones. Surface drilling of the
North Deep zone also commenced during the quarter.
Brazil
Exploration drilling during the quarter in Brazil tested two projects in the Tapajos region. At the Ruben
Zilio project, located along strike southeast of Tocantinzinho, soil geochemical anomalies were tested in
three target areas; none of this drilling identified significant mineralization. At Tocantinzinho, additional
sampling extended the Cu-Mo-Au mineralization over a 6 km trend. Four drillholes tested different areas
of this anomaly, and all encountered intervals of quartz and sulfide vein mineralization.
Board of Directors Update
The Board of Directors is pleased to announce that it has appointed two new directors following a
search process conducted by the Corporate Governance and Nominating Committee of the Board.
Joining the board are Pamela Gibson and John Webster.
Pamela Gibson was appointed to the Board of Directors on September 2, 2014. Ms. Gibson has over 30
years of experience, primarily as a corporate lawyer at Shearman & Sterling LLP, advising companies on
capital market transactions, governance, disclosure, compliance and other corporate strategic matters.
Ms. Gibson has extensive industry experience in the metals and mining, oil and gas, energy, telecom and
technology sectors. Ms. Gibson was the Managing Partner of both the Toronto office (1990 to 1995)
and London office (1995 to 2002), head of the Europe and Asia Capital Markets Group (2002 to 2004),
and is currently Of Counsel at Shearman & Sterling LLP. Ms. Gibson also serves on the Board of
Directors of NYSE listed GasLog Partners LP. Ms. Gibson holds a Bachelor of Arts degree, with
distinction, from York University, a Bachelor of Laws degree from Osgoode Hall Law School and a Master
of Laws degree from New York University. Ms. Gibson was also a law clerk to the Honorable Justice
Howland, Chief Justice of the Ontario Court of Appeal.
Effective January 1, 2015, John Webster will join the Company’s Board of Directors. Mr. Webster holds a
BA (Hons) Degree in Economic and Social History from the University of Kent. Mr. Webster is a Member
of the Institute of Chartered Accountants in England and Wales, a Member of the Institute of Chartered
Accountants of British Columbia (1983) and a Fellow (2002), a CPA in Colorado (2005) and a Member of
the Romanian Chamber of Auditors (CAFR) (2012). Upon graduation, Mr. Webster qualified as a
Member of the Institute of Chartered Accountants in England and joined Thornton Baker and
subsequently joined Price Waterhouse Coopers LLP, (PWC) Canada. Mr. Webster was a Partner at PWC
and most recently Partner and Assurance Leader for Romania and South Eastern Europe at PWC
Romania until his retirement in June 2014. He has extensive experience in the Mining and Technology
sectors and has worked with both venture capital and listed companies.
Corporate Update
Further to the announcement in the second quarter, the Company has elected to retain Bank of America
Merrill Lynch as its sponsor for a proposed Hong Kong Stock Exchange listing of its Chinese business
units. Eldorado is the largest foreign producer of gold in China, with three operating gold mines
(Jinfeng, Tanjianshan and White Mountain) and the Eastern Dragon project. The Company’s Chinese
operations presently produce approximately 300,000 ounces of gold annually.
11
Conference Call
Eldorado will host a conference call on Friday, October 31, 2014 to discuss the Third Quarter 2014
Financial and Operating Results at 8:30am PDT (11:30am EDT). You may participate in the conference
call by dialling 416-340-8527 in Toronto or 1-800-446-4472 toll free in North America and asking for the
Eldorado Conference Call.
The call will be available on Eldorado’s website: www.eldoradogold.com. A replay of the call will be
available until November 7, 2014 by dialling 905-694-9451 in Toronto or 1-800-408-3053 toll free in
North America and entering the Passcode: 771 2109.
About Eldorado Gold
Eldorado is a leading low cost gold producer with mining, development and exploration operations in
Turkey, China, Greece, Romania and Brazil. The Company’s success to date is based on a low cost
strategy, a highly skilled and dedicated workforce, safe and responsible operations, and long-term
partnerships with the communities where it operates. Eldorado’s common shares trade on the Toronto
Stock Exchange (TSX: ELD) and the New York Stock Exchange (NYSE: EGO).
Certain of the statements made herein may contain forward-looking statements or information within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Often, but not always, forward-looking statements and
forward-looking information can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”,
“forecasts”, “intends”, “anticipates”, or “believes” or the negatives thereof or variations of such words and phrases or statements that certain
actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements or information
herein include, but are not limited, to statements or information with respect to the Company’s 2014 Third Quarter Financial and Operating
Results.
Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied by such forward-looking statements or information. We have made
certain assumptions about the forward-looking statements and information, including assumptions about the legal restrictions regarding the
payment of dividends by the Company; assumptions about the price of gold; anticipated costs and expenditures; estimated production, mineral
reserves and metallurgical recoveries; financial position, reserves and resources and gold production; and the ability to achieve our goals.
Although our management believes that the assumptions made and the expectations represented by such statements or information are
reasonable, there can be no assurance that the forward-looking statements or information will prove to be accurate. Furthermore, should one
or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary
materially from those described in forward-looking statements or information. These risks, uncertainties and other factors include, among
others, the following: gold price volatility; risks of not meeting production and cost targets; discrepancies between actual and estimated
production, mineral reserves and resources and metallurgical recoveries; mining operational and development risk; litigation risks; regulatory
restrictions, including environmental regulatory restrictions and liability; risks of sovereign investment and operating in foreign countries;
currency fluctuations; speculative nature of gold exploration; global economic climate; dilution; share price volatility; competition; loss of key
employees; additional funding requirements; and defective title to mineral claims or property, as well as those factors discussed in the sections
entitled “Forward-Looking Statements” and "Risk Factors" in the Company's Annual Information Form & Form 40-F dated March 28, 2014
There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on the forward-looking
statements or information contained herein. Except as required by law, we do not expect to update forward-looking statements and
information continually as conditions change and you are referred to the full discussion of the Company's business contained in the Company's
reports filed with the securities regulatory authorities in Canada and the U.S.
Contact
Krista Muhr, Vice President Investor Relations
Eldorado Gold Corporation
604.601.6701 or 1.888.353.8166
[email protected]
12
ELDORADO GOLD
Q3 2014 Gold Production Highlights (in US$)
First
Quarter
2014
Gold Production
Ounces Sold
1
Ounces Produced
2,4
Cash Operating Cost ($/oz)
3,4
Total Cash Cost ($/oz)
Realized Price ($/oz - sold)
Second
Quarter
2014
Third
Quarter
2014
Third
Quarter
2013
First
Nine Months
2014
First
Nine Months
2013
190,628
196,523
519
577
1,299
190,621
200,551
489
549
1,299
189,321
192,578
488
543
1,274
199,117
204,620
472
528
1,338
570,570
589,652
499
556
1,291
564,723
552,359
485
544
1,447
Kişladağ Mine, Turkey
Ounces Sold
Ounces Produced
Tonnes to Pad
Grade (grams / tonne)
4
Cash Operating Cost ($/oz)
3,4
Total Cash Cost ($/oz)
66,852
67,075
3,856,882
0.73
456
473
72,815
76,980
3,127,844
1.11
443
466
82,374
78,030
3,829,444
1.28
411
427
85,029
84,762
3,336,465
1.28
324
343
222,041
222,085
10,814,170
1.04
435
454
231,959
231,718
9,553,306
1.28
328
349
Efemcukuru Mine, Turkey
Ounces Sold
Ounces Produced
Tonnes Milled
Grade (grams / tonne)
4
Cash Operating Cost ($/oz)
3,4
Total Cash Cost ($/oz)
27,647
26,969
106,501
8.56
526
547
25,435
25,034
110,706
7.99
552
576
24,033
26,838
106,942
9.08
547
564
26,410
23,438
105,641
8.50
551
568
77,115
78,841
324,149
8.54
541
562
101,888
69,583
301,869
8.77
558
586
Tanjianshan Mine, China
Ounces Sold
Ounces Produced
Tonnes Milled
Grade (grams / tonne)
4
Cash Operating Cost ($/oz)
3,4
Total Cash Cost ($/oz)
28,379
28,379
263,609
3.44
422
592
25,790
25,790
278,227
3.30
391
570
25,387
25,387
281,863
3.51
381
563
28,179
28,179
285,406
3.40
377
557
79,556
79,556
823,699
3.42
399
575
82,324
82,324
805,532
3.54
405
589
Jinfeng Mine, China
Ounces Sold
Ounces Produced
Tonnes Milled
Grade (grams / tonne)
4
Cash Operating Cost ($/oz)
3,4
Total Cash Cost ($/oz)
41,277
41,295
364,987
4.00
626
709
45,581
45,568
371,971
4.17
540
622
39,397
39,421
353,048
3.86
609
693
40,212
40,212
363,798
3.66
684
767
126,255
126,284
1,090,006
4.01
590
673
90,888
90,843
1,052,406
3.14
743
831
White Mountain Mine, China
Ounces Sold
Ounces Produced
Tonnes Milled
Grade (grams / tonne)
4
Cash Operating Cost ($/oz)
3,4
Total Cash Cost ($/oz)
26,473
26,473
200,682
4.13
607
646
21,000
21,000
213,741
3.56
583
623
18,130
18,130
218,500
2.79
648
691
19,287
19,287
209,581
3.28
713
751
65,603
65,603
632,923
3.48
611
651
57,664
57,664
611,548
3.44
693
734
Olympias, Greece
Ounces Sold
1
Ounces Produced
6,332
6,179
4,772
8,742
17,283
Tonnes Milled
144,522
168,013
137,566
185,012
450,101
Grade (grams / tonne)
3.08
2.84
2.74
3.19
2.89
4
Cash Operating Cost ($/oz)
3,4
Total Cash Cost ($/oz)
1
Ounces produced include production from tailings retreatment in Olympias.
2
Cost figures calculated in accordance with the Gold Institute Standard.
3
Cash operating costs, plus royalties and the cost of off-site administration.
4
Cash operating costs and total cash costs are non-IFRS measures. Please see our MD&A for an explanation and discussion of these.
20,227
391,096
3.55
-
13
Eldorado Gold Corporation
Unaudited Condensed Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars)
Note
AS S ETS
Current assets
Cash and cash equivalents
Term deposits
Restricted cash
M arketable securities
Accounts receivable and other
Inventories
Investment in associate
Deferred income tax assets
Other assets
Defined benefit pension plan
Property, plant and equipment
Goodwill
LIABILITIES & EQUITY
Current liabilities
Accounts payable and accrued liabilities
Current debt
Debt
Other non-current liability
Asset retirement obligations
Deferred income tax liabilities
5
5
4(b)
Equity
Share capital
Treasury stock
Contributed surplus
Accumulated other comprehensive loss
Deficit
Total equity attributable to shareholders of the Company
Attributable to non-controlling interests
6
S eptember 30, 2014 December 31, 2013
$
$
539,489
22,800
262
4,520
81,035
224,769
872,875
530
61,398
14,270
5,872,154
526,296
7,347,523
589,180
34,702
262
4,387
89,231
244,042
961,804
10,949
997
37,330
13,484
5,684,382
526,296
7,235,242
185,013
8,127
193,140
586,652
48,452
87,004
864,019
1,779,267
211,406
16,402
227,808
585,006
85,259
842,305
1,740,378
5,315,352
(13,480)
38,380
(16,995)
(67,720)
5,255,537
312,719
5,568,256
7,347,523
5,314,589
(10,953)
78,557
(17,056)
(143,401)
5,221,736
273,128
5,494,864
7,235,242
Approved on behalf of the Board of Directors
(Signed) Robert R. Gilmore
(Signed) Paul N. Wright
Director
Director
The accompanying notes are an integral part of these consolidated financial statements.
14
Eldorado Gold Corporation
Unaudited Condensed Consolidated Income Statements
(Expressed in thousands of U.S. dollars)
Three months ended
September 30,
Nine months ended
September 30,
2014
$
2013
$
2014
$
2013
$
263,510
287,254
808,877
892,251
123,503
7,577
39,341
170,421
120,753
40,461
161,214
380,812
7,577
129,008
517,397
367,254
112,809
480,063
Gross profit
93,089
126,040
291,480
412,188
Exploration expenses
General and administrative expenses
Defined benefit pension plan expense
Share based payments
Foreign exchange loss (gain)
3,488
17,430
407
3,253
4,468
9,866
14,671
616
3,765
(939)
11,273
52,373
1,223
15,528
1,554
27,730
49,396
1,864
15,933
4,879
Operating profit
64,043
98,061
209,529
312,386
Loss (gain) on disposal of assets
Loss (gain) on marketable securities and other investments
Loss on investments in associates
Impairment loss on investment in associates
Other income
Asset retirement obligation accretion
Interest and financing costs
278
122
(4,206)
582
6,832
(120)
1,426
12,707
(2,460)
278
9,748
2,103
1,444
102
(7,053)
1,745
23,153
(135)
(21)
2,549
12,707
(7,574)
1,003
31,310
Profit before income tax
Income tax expense
Profit for the period
60,435
38,900
21,535
76,482
38,152
38,330
188,035
96,343
91,692
272,547
233,954
38,593
Attributable to:
Shareholders of the Company
Non-controlling interests
Profit for the period
19,791
1,744
21,535
36,410
1,920
38,330
88,691
3,001
91,692
34,221
4,372
38,593
716,284
716,284
715,038
715,364
716,254
716,254
714,901
715,229
0.03
0.03
0.05
0.05
0.12
0.12
0.05
0.05
Revenue
Metal sales
Cost of sales
Production costs
Inventory write-down
Depreciation and amortization
Weighted average number of shares outstanding
Basic
Diluted
Earnings per share attributable to shareholders of the
Company:
Basic earnings per share
Diluted earnings per share
The accompanying notes are an integral part of these consolidated financial statements.
15
Eldorado Gold Corporation
Unaudited Condensed Consolidated Statements of Comprehensive Income
(Expressed in thousands of U.S. dollars except per share amounts)
Three months ended
September 30,
2014
2013
$
$
Profit for the period
Other comprehensive gain (loss):
Change in fair value of available-for-sale financial assets
Realized gains on disposal of available-for-sale
financial assets
Total other comprehensive gain (loss) for the period
Total comprehensive income for the period
Attributable to:
Shareholders of the Company
Non-controlling interests
Nine months ended
September 30,
2014
2013
$
$
21,535
38,330
91,692
38,593
(687)
(321)
(840)
(1,721)
142
(545)
20,990
(321)
38,009
901
61
91,753
(17)
(1,738)
36,855
19,246
1,744
20,990
36,089
1,920
38,009
88,752
3,001
91,753
32,483
4,372
36,855
The accompanying notes are an integral part of these consolidated financial statements.
16
Eldorado Gold Corporation
Unaudited Condensed Consolidated Statements of Cash Flows
(Expressed in thousands of U.S. dollars)
Note
Cash flows generated from (used in):
Operating activities
Profit for the period
Items not affecting cash:
Asset retirement obligation accretion
Depreciation and amortization
Unrealized foreign exchange loss (gain)
Deferred income tax expense
Loss (gain) on disposal of assets
Loss on investments in associates
Impairment loss on investment in associates
Loss (gain) on marketable securities and other investments
Share based payments
Defined benefit pension plan expense
Three months ended
September 30,
2014
2013
$
$
Nine months ended
September 30,
2014
2013
$
$
21,535
38,330
91,692
38,593
582
39,341
708
12,516
278
122
3,253
407
78,742
278
40,461
(44)
7,388
(120)
1,426
12,707
3,765
616
104,807
1,745
129,008
584
22,183
2,103
102
1,444
15,528
1,223
265,612
1,003
112,809
480
143,836
(135)
2,549
12,707
(21)
15,933
1,864
329,618
13,447
92,189
15,454
120,261
(41,153)
224,459
(20,811)
308,807
(102,758)
(36)
6,539
(818)
269
2,226
11
(94,567)
(119,055)
412
9,438
161,841
(17)
52,619
(30,318)
(291,105)
140
27,096
(1,670)
1,134
11,902
13
(282,808)
(336,818)
604
24,666
332
(6,357)
(59,600)
(12)
(377,185)
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents - beginning of period
438
(6,546)
(3,410)
8,127
(16,240)
(17,631)
(20,009)
559,498
1,945
(34,708)
3,565
(29,198)
143,682
522,158
438
40,000
(13,010)
(4,225)
(6,413)
24,490
(32,622)
8,658
(49,691)
589,180
3,546
(84,949)
(6,462)
15,977
(10,354)
(383)
(82,625)
(151,003)
816,843
Cash and cash equivalents - end of period
539,489
665,840
539,489
665,840
Changes in non-cash working capital
Investing activities
Net cash used on acquisition of subsidiary
Purchase of property, plant and equipment
Proceeds from the sale of property, plant and equipment
Proceeds on production from tailings retreatment
Purchase of marketable securities
Proceeds from the sale of marketable securities
Investments in associates
Redemption of (investment in) term deposits
Increase (decrease) in restricted cash
Financing activities
Issuance of common shares for cash
Investment by non-controlling interest
Dividend paid to shareholders
Dividends paid to non-controlling interest
Purchase of treasury stock
Long-term and bank debt proceeds
Long-term and bank debt repayments
Loan financing costs
9
4(a)
4(b)
The accompanying notes are an integral part of these consolidated financial statements.
17
Eldorado Gold Corporation
Unaudited Condensed Consolidated Statements of Changes in Equity
(Expressed in thousands of U.S. dollars)
Three months ended
September 30,
2014
2013
$
$
Nine months ended
September 30,
2014
2013
$
$
5,314,813
438
101
5,306,947
1,945
694
5,314,589
438
101
5,300,957
3,546
1,683
5,315,352
184
5,309,770
224
5,315,352
3,584
5,309,770
Balance beginning of period
Purchase of treasury stock
Shares redeemed upon exercise of restricted share units
(14,845)
1,365
(11,775)
691
(10,953)
(6,413)
3,886
(7,445)
(6,462)
2,823
Balance end of period
(13,480)
(11,084)
(13,480)
(11,084)
Contributed surplus
Balance beginning of period
Share based payments
37,197
3,390
71,389
3,685
78,557
15,140
65,382
16,213
(1,365)
(741)
-
(691)
2,911
(3,886)
(51,106)
-
(2,823)
2,911
(101)
38,380
(878)
76,416
(325)
38,380
(5,267)
76,416
(16,450)
(545)
(16,995)
(25,952)
(321)
(26,273)
(17,056)
61
(16,995)
(24,535)
(1,738)
(26,273)
(80,965)
542,446
(143,401)
594,876
(6,546)
19,791
(67,720)
5,255,537
(34,708)
36,410
544,148
5,892,977
(13,010)
88,691
(67,720)
5,255,537
(84,949)
34,221
544,148
5,892,977
310,975
1,744
286,302
1,920
273,128
3,001
284,100
4,372
312,719
(7,584)
(3,161)
277,477
(3,410)
40,000
312,719
(7,584)
(3,411)
277,477
5,568,256
6,170,454
5,568,256
6,170,454
Note
Share capital
Balance beginning of period
Shares issued upon exercise of share options, for cash
Transfer of contributed surplus on exercise of options
Transfer of contributed surplus on exercise of deferred
phantom units
Balance end of period
Treasury stock
Shares redeemed upon exercise of restricted share units
Recognition of other non-current liability and related costs
Partial reversal of non-controlling interest acquired on buy-out
Transfer to share capital on exercise of options and deferred
phantom units
Balance end of period
4(b)
Accumulated other comprehensive loss
Balance beginning of period
Other comprehensive gain (loss) for the period
Balance end of period
Retained earnings (deficit)
Balance beginning of period
Dividends paid
Profit attributable to shareholders of the Company
Balance end of period
Total equity attributable to shareholders of the Company
Non-controlling interests
Balance beginning of period
Profit attributable to non-controlling interests
Dividends declared to non-controlling interests
Increase (decrease) during the period
Balance end of period
Total equity
4(b)
The accompanying notes are an integral part of these consolidated financial statements.
Click here for the Unaudited Condensed Consolidated Financial Statements for the quarter ended Sept 30, 2014.
18